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									             PARRIS ISLAND CONTRACTS DEPARTMENT

                  ACQUISITION PLANNING GUIDE

                            TABLE OF CONTENTS

CHAPTER 1 INTRODUCTION                                                   Page

1.0       General                                                        1-1
1.1       Acquisition Planning                                           1-1
1.2       Program Manage r (PM)                                          1-1
1.3       Requirements for an AP                                         1-1
1.4       AP Approval                                                    1-1
1.5       Contractor Support                                             1-1


CHAPTER 2 ACQUISITION PLAN DEVELOPMENT

2.0       General                                                        2-1
2.1       Responsibilities                                               2-1
2.2       Preparation                                                    2-2
2.3       Cover Page                                                     2-3
2.4       Identification and Numbering                                   2-3
2.5       Markings                                                       2-3
2.6       Funding Data                                                   2-3
2.7       Milestone Chart                                                2-3
2.8       Waive rs for Using Military Specifications and Standards       2-4
2.9       Helpful Hints for Processing APs Expeditiously                 2-4

CHAPTER 3 REVISIONS TO THE ACQUISITION PLAN

3.0       General                                                        3-1
3.1       Method of Revision                                             3-1
3.2       Signatures and Approval                                        3-1

APPENDICES

APPENDIX A             Illustrated Acquisition Plan Format and Content   A-1
APPENDIX B             Sample Funding Chart                              B-1
APPENDIX C             Sample Milestone Chart                            C-1
APPENDIX D             Sample Estimated Cost Chart                       D-1
REFERENCES - The following references may be found at Web sites shown:

                    Reference                            Web Site

    FAR (Federal Acquisition Regulation) http://www.arnet.gov/far/

    DFARS (Defense FAR Supplement) http://www.acq.osd.mil/dpap/dfars/index.htm

    NMCARS (Navy Marine Corps Acquisition Regulation Supplement)
    http://www.acquisition.navy.mil/navyaos/content/view/full/3464

    DoD 5000 Resource Center                 http://akss.dau.mil/darc/darc.html
      (DoDD 5000.1, DoDI 5000.2, and Defense Acquisition Guidebook)

    ASSIST Acquisition Streamlining              http://assist.daps.dla.mil/online/start/
     and Standardization Information
     System

    SECNAV and OPNAV, Directives,                http://neds.daps.dla.mil/
     Instructions, and Notices

     SECNAV and OPNAV Forms                      http://forms.daps.dla.mil/

     DoD Directives and Instructions and         http://www.dtic.mil/whs /directives
      Publications




                                            ii
                             LIST OF ACRONYMS

A&AS        Advisory and Assistance Services
ACAT        Acquisition Category
ADM         Acquisition Decision Memorandum
AIS         Automated Information System
AOA         Analysis of Alternatives
AP          Acquisition Plan
APG         Acquisition Planning Guide
ARB         Acquisition Review Board
ASN         Assistant Secretary of the Navy
ASN(RD&A)   Assistant Secretary of the Navy (Research, Development and Acquisition)
AS          Acquisition Strategy
BY          Base Year
CAIV        Cost as an Independent Variable
CALS        Computer-Aided Acquisition and Logistics Support
CBD         Commerce Business Daily
CDR         Critical Design Review
CFR         Code of Federal Regulations
CNO         Chief of Naval Operations
CO          Contracting Officer
DAB         Defense Acquisition Board
DARPA       Defense Advanced Research Projects Agency
D&F         Determination and Findings
DFARS       Defense FAR Supplement
DOD         Department of Defense
DODD        Department of Defense Directive
DON         Department of the Navy
DPAS        Defense Priorities and Allocations System
DRPM        Direct Reporting Program Manager
EMD         Engineering and Manufacturing Development
EVMS        Earned Value Management System
FAR         Federal Acquisition Regulation
FBO         FedBizOpps
FFP         Firm Fixed Price
FMS         Foreign Military Sales
FRP         Full Rate Production
IDE         Integrated Digital Environment
IHS         Information Handling System
IT          Information Technology
ILS         Integrated Logistics Support
ILSP        Integrated Logistics Support Plan
IP          Industrial Preparedness


                                     iii
                       LIST OF ACRONYMS

J&A      Justification and Approval
LRIP     Low-Rate Initial Production
MAIS     Major Automated Information System
MDA      Milestone Decision Authority
NATO     North Atlantic Treaty Organization
NAVSO    Naval Supply Office
NAVSUP   Naval Supply Systems Command
NDI      Nondevelopmental Item
NMCAG    Navy Marine Corps Acquisition Guide
NMCARS   Navy Marine Corps Acquisition Regulation Supplement
NSS      National Security System
NTP      Navy Training Plan
OFPP     Office of Federal Procurement Policy
OGA      Other Government Activities
OMB      Office of Management and Budget
OPNAV    Chief of Naval Operations
ORD      Operational Requirements Document
PARM     Participating Acquisition Resource Manager
PDM      Program Decision Meeting
PDR      Preliminary Design Review
P.E.     Program Element
PEO      Program Executive Officer
P.L.     Public Law
PM       Program Manager
POM      Program Objectives Memorandum
PRR      Production Readiness Review
RDT&E    Research, Development, Test and Evaluation
R&M      Reliability and Maintainability
RM&QA    Reliability, Maintainability, and Quality Assurance
RFP      Request for Proposal
SECNAV   Secretary of the Navy
SEM      Standard Electronic Modules
SIE      Standards Improvement Executive
SLEP     Service Life Extension Program
SSA      Source Selection Authority
TDP      Technical Data Package
TEMP     Test and Evaluation Master Plan
TOC      Total Ownership Cost




                                 iv
                                          CHAPTER 1

                                       INTRODUCTION

1.0 General. The Acquisition Plan (AP) contains the documented results of advanced
acquisition planning. The purpose of this planning is to ensure that the Government meets its
needs in the most effective, economical, and timely manner. An approved AP represents a
formal agreement between the Program Manager (PM), Contracting Officer, Chief of the
Contracting Office, and Program Executive Officer (PEO), Direct Reporting Program Manager
(DRPM), or Head of the Contracting Activity (HCA) as to how the PM will execute the program.

1.1 Acquisition Planning. Acquisition planning is required by statute, which is implemented
through the Federal Acquisition Regulation (FAR), in order to promote and provide for (1) the
acquisition of commercial items to the maximum extent practicable; and (2) full and open
competition or, when full and open competition is not required or possible, maximum practicable
competition.

Acquisition planning is the process by which the efforts of all personnel responsible for the
acquisition are coordinated and integrated through a comprehensive plan for fulfilling the agency
need in a timely manner, and at a reasonable cost. It includes developing the overall s trategy for
managing the acquisition. The AP contains the documented results of acquisition planning.

Acquisition planning should begin as soon as the need is identified, preferably well in advance of
the fiscal year in which contract award is necessary.

1.2 Program Manage r (PM). The PM is vested with the authority, accountability, and
resources necessary to manage all aspects of a program from concept to disposal. The PM’s
responsibilities are delineated in SECNAV Instruction 5400.15 A , “Department of the Navy
Research, Development and Acquisition, and Associated Life Cycle Management
Responsibilities.”

1.3 Requirements for an AP. The requirements for the preparation of a written AP are
addressed at DFARS 207.103 and NMCARS 5207.103.

1. 4 AP Approval. APs must be approved by the cognizant HCA, PEO, or DRPM, or designee.
In addition to the approval signature, APs must be signed by the cognizant PM, Contracting
Officer, and the Chief of the Contracting Office.

1.5 Contractor Support. FAR 7.503(d) provides that services in support of acquisition
planning generally are not considered to be an inherently governmental function. However, the
use of any such services must be free of any potential conflicts of interest.




                                               1-1
                                           CHAPTER 2

                           ACQUISITION PLAN DEVELOPMENT

2.0 General. This Guide summarizes FAR, DFARS, and DoD/Navy directives and instructions
for use by HCAs, PEOs, DRPMs, and their supporting activities in preparing APs. The AP should
address all technical, business, management, and other significant considerations that will affect
the acquisition. The specific content of each plan will vary, depending on the nature,
circumstances, and phase of the acquisition. To minimize the administrative burden, common
acquisition strategy paragraphs from the Acquisition Strategy document should be used for the
AP.

The AP should be keyed to the Department of Defense Future Years Defense Program (FYDP),
applicable budget submissions, and the Acquisition Decision Memorandum (ADM), as
appropriate. In accordance with FAR 7.104(a), at key dates specified in the plan or whenever
significant changes occur, and no less often than annually, the planner should review the plan and,
if appropriate, revise it. APs should be revised in accordance with Chapter 3.

For programs with multiple contracts, it may be beneficial to prepare one principal AP for the
major procurement and prepare individual APs for the acquisition of equipment or software.
When using multiple APs, the principal AP should:

               a. Reference its subsidiary AP(s) and vice versa.

               b. Identify segments of the program to be assigned to field activities for
                  contractual action.

               c. Provide integrated planning for the total system, including an acquisition
                  milestone chart.

Other APs may be written on either a program or an individual contract basis. Contractor services
that provide assistance to a functional organization in supporting numerous systems or programs
should be the subject of an individual AP.

2.1 Responsibilities. Pursuant to DFARS 207.103 (g), the PM, or other official responsible for
the program, has overall responsibility for acquisition planning. The PM is responsible for
convening acquisition planning meetings with representatives from logistics, technical, fiscal,
security, contracting, legal counsel, small business, and other areas, as appropriate, to prepare
initial APs or revise APs. It is incumbent upon the PM to coordinate the plan with all those who
have a responsibility for the development, manage- ment, or administration of the acquisition
(DFARS 207.105).




                                                2-1
All personnel engaged in the management of the acquisition process are essential to the
comprehensive acquisition planning and preparations necessary to achieve the acquisition
objectives. These personnel should be made cognizant of their responsibilities and actively
participate in the development and preparation of the AP, if acquisition planning is to be
successful. Planning meetings are strongly encouraged in order to coordinate planning efforts,
which should significantly reduce AP development time.

The Contracting Officer supports the PM by providing input and advising the PM on contracting
strategy, appropriate contract type selection, and other contractual/ business matters. The small
business specialist advises on small business considerations that may potentially impact the
contracting strategy.

2.2 Preparation. Appendix A is an illustrated AP; it identifies the requirements that should be
addressed in the AP. The source of the requirement (i.e., FAR or DFARS) is indicated in the left-
hand margin. In some instances, the FAR/DFARS requirement is supplemented with a
background “Note” or additional information that should be addressed in the AP. The narrative
under the highlighted titles should not be restated in the AP. When using the recommended
format, if an individual item does not apply, "not applicable" should be stated and a brief
explanation provided as to why it does not apply; for example:

       a. Under the "Source Selection Procedures" paragraph, if there is no competition, state,
          "Not applicable since this is a sole source acquisition".

       b. If no Government-Furnished Property will be provided under the contract, the
          "Government-Furnished Property" paragraph would state "Not applicable; no
          government- furnished property will be provided under the contract(s)."

       c. If the program is unclassified and does not involve sensitive unclassified information,
          state "Not applicable; this is a non-sensitive unclassified program" under the "Security
          Considerations" paragraph.

For services-only APs, not all requirements that are applicable to systems/hardware will apply. If
a requirement does not apply, the illustrated AP in Appendix A will so state.

The initial AP defines the structure of the program throughout its acquisition cycle. It should
introduce the overall program scope and required funding levels, provide long range planning
information, and identify the program milestones. Depending on the development phase of the
acquisition, the initial AP may or may not contain definitive details. As the acquisition becomes
more complex and costly, more and greater detail in the planning process will be required. The
AP should delineate and support the acquisition approach that the PM and the acquisition
participants have developed for the program.




                                                2-2
AP content should be as relevant and concise as practicable using references to avoid repetition of
data contained elsewhere in the AP or in other documents. Approved program documents such as
the Integrated Logistics Support Plan (ILSP), Test and Evaluation Master Plan (TEMP), or Navy
Training Plan (NTP) may be referenced by their identification number, approval or projected
approval date, and approving authority. Charts and tables should be used whenever possib le for
the illustration of details instead of narrative text, lengthy explanations, or descriptions.

2.3 Cover page. An AP cover page is shown in Appendix A. All signatures should be obtained
as expeditiously as possible and a cut-off date for information contained in the AP should be
stated on the cover page.

2.4 Identification and Numbering.

         Each contracting activity should select an identification and numbering system for APs and
their revisions and consistently apply it. APs should retain their original number throughout the
life of the program.

2. 5 Markings.

        APs should be prepared as unclassified documents whenever possible and marked "For
Official Use Only" (top and bottom of each page). In accordance with SECNAVINST 5510.36
(Subj: Department of the Navy (DON) Information Security Program (ISP) Regulation ), all APs
should be marked as follows:

            DISTRIBUTION STATEMENT B: Distribution authorized to U.S.
            Government agencies only. Other requests for this document must
            be referred to (insert originating office).

2. 6 Funding Data. Appendix B provides an example of a format that may be used to depict
program funding data.

2. 7 Milestone Chart. The milestone chart introduces discipline into the planning process by
identifying in graphic form the points at which critical decisions must be made, and time factors
that must be observed when action is necessary to produce an item or to make a competitive buy
possible. The chart not only forces consideration of all factors involved, but it also provides a
visual portrayal of the decisions necessary to achieve objectives, and indicates the time at which
they should be made. The milestone chart portrays the step-by-step planning and provides a visual
display of the acquisition strategy for the milestones. The chart illustrates milestones that should
be recognized in the decision making process. The format of the milestone chart depicted in
Appendix C is flexible, because the same milestones may not be present in every acquisition
program.



                                                2-3
2. 8 Waive rs for Using Military Specifications and Standards. The use of military
specifications and standards are prohibited unless waived by the Milestone Decision Authority
(MDA) or a DoN Department wide waiver is applicable. If an acq uisition anticipates using a
military specification or standard, identify the applicable specification or standard and the
approval status of the waiver

2. 9 Hints for Processing APs Expeditiously. The following helpful hints are provided to assist
in processing APs expeditiously and avoid problems that may occur and cause delay in obtaining
AP approval .

       a. Ensure that the Acquisition Strategy has been approved.

       b. Check for consistency between the text and any charts or tables.

       c. Ensure that all relevant topics have been adequately addressed.

       d. Ensure that Advisory and Assistance Services (A&AS) have been budgeted in
          the PB-15.

       e. Verify that the TEMP, ILSP, or other reference documents are current and
          properly identified.

       f. Ensure that the Milestone chart reflects correct milestones and reasonable
          timeframes for milestones.

       g. Ensure that the AP is coordinated with the appropriate functional areas to
          confirm that information is accurate and complete.

       h. Ensure that the planning for any follow-on procurement addresses whether or not
          in-process and final reviews of technical data, provided by the previous
          contractor and intended to be provided to the follow-on contractor, were made
          and determined to be adequate.




                                                2-4
                                          CHAPTER 3

                        REVISIONS TO THE ACQUISITION PLAN

3.0 General. DFARS 207.103(g) designates the PM as having overall responsibility for
acquisition planning. This responsibility includes complying with the requirement of FAR 7.104
(a) to perform an annual review of the AP to ensure it is current. If the AP is not current, it
should be revised and brought up to date. If significant program changes occur, the AP should be
revised to reflect the changes prior to proceeding with their imp lementation. APs should also be
revised to coincide with major program events [e.g., Defense Acquisition Board (DABs),
Navy/Marine Corps Program Decision Meetings (PDMs), Acquisition Review Boards (ARBs)],
and the transition from one phase to another (e.g., engineering and manufacturing development to
production and deployment). Examples of when an AP should be revised include:

       a. The PM is unable to meet any condition attached to a conditionally approved AP.

       b. The PM is unable to execute the competition plan set forth in the approved AP.

       c. A major windfall or shortfall in program funding or a major stretch-out or
         compression in the program schedule is anticipated.

       d. There is a substantial quantity increase and the program was previously approved
          on the basis of a sole source acquisition.

       e. The source selection authority (SSA) intends to change the source selection plan
         in a manner that would reduce the number of potential competitors or adversely
         affect small business participation.

3.1 Method of Revision. Dependent upon the extent of the changes, AP revisions may be
prepared in either memorandum format, as revised pages to the initial AP, or as a completely
revised AP. Regardless of the method of revision, all changes from that previously approved (e.g.,
change in strategy from competition to sole source, funding adjustments, quantity changes, etc.)
should be specifically identified and explained.

If the AP revision is a result of significant program changes, it should be prepared in the
recommended format of this guide. For other than significant program changes, a memorandum
format or revised pages to the initial AP may be used. If revised pages are used, they should be
dated on top and the changed text should be marked with a vertical line in the right-hand margin.

3. 2 Signatures and Approval. AP revisions based on significant program changes should be
approved by the original approval authorities.




                                              3-1
                  APPENDIX A

ILLUSTRATED ACQUISITION PLAN FORMAT AND CONTENT
                                  APPENDIX A
                   ACQUISITION PLAN SIGNATURE PAGE FORMAT

            (Classification: If not classified, must be FOR OFFICIAL USE ONLY.)

ACQUISITION PLAN NUMBER: __________ REV: _______

PROGRAM TITLE: __________________________________________ ACAT_____

ACQUISITION PROGRAM MANAGER: ________________________ CODE _____

REQUIREMENTS DOCUMENT: Identify the Operational Requirements Document (ORD) or
other document that authorizes program initiation, include approval date, and revalidation date, if
applicable.

ACQUISITION STRATEGY APPROVAL: Document approval of the Acquisition Strategy
(AS).

DESCRIPTION OF PROGRAM: Describe the program in brief, non-technical language; e.g., a
brief description similar to that forwarded in the Congressional Data Sheets with the annual
budget. Characterize the program's current phase/life-cycle status, e.g., entering System
Development and Demonstration Phase. Include item description, quantity being procured, and
time period. If the AP is being updated, provide the reason(s) for the update.


__________________________________________________________                  ____________
APPROVED BY: HCA, PEO, or DRPM (include title)                                 Date

__________________________________________________________                  ____________
Chief of Contracting Office                                                     Date

__________________________________________________________                  ____________
Contracting Officer                                                             Date

__________________________________________________________                  ____________
Program Manager                                                                 Date

Questions concerning this AP should be referred to (name), (code), (telephone no.). The cutoff
date for information contained in this document is (date).

DISTRIBUTION STATEMENT B: Distribution authorized to U.S. Government agencies only.
Other requests for this document must be referred to (insert controlling office).
                              TABLE OF CONTENTS

                                                                 Page

SECTION 1   ACQUISITION BACKGROUND AND OBJECTIVES

1.1         Statement of Need                                    A1-1
1.2         Historical Summary                                   A1-1
1.3         Applicable Conditions                                A1-1
1.4         Capability or Performance                            A1-2
1.5         Delivery or Performance-Period Require ments         A1-2
1.6         Identification of Participants in Acquisition        A1-2
              Plan Preparation

SECTION 2 COST, BUDGET AND FUNDING CONSIDERATIONS

2.1         Cost                                                 A2-1
2.1.1       Total Owne rship Cost                                A2-1
2.1.2       Design-to-Cost                                       A2-1
2.1.3       Application of Should-Cost                           A2-2
2.2         Budgeting and Funding                                A2-3
2.2.1       Budget                                               A2-3
2.2.2       Funding                                              A2-3

SECTION 3 ALTERNATIVES, TRADE-OFFS, AND RISKS

3.1         Alte rnatives                                        A3-1
3.2         Trade-Offs                                           A3-1
3.3         Risks                                                A3-1

SECTION 4 MILESTONES

4.1         Milestone Chart Depicting the Objectives of the      A4-1
             Acquisition
4.2         Milestones for Updating the Acquisition Plan         A4-1
4.3         Logistics Milestones                                 A4-1
4.4         Approval for Low-rate Initial Production (LRIP) or   A4-1
             Full Rate Production (FRP) (or Construction)

SECTION 5 BUSINESS CONSIDERATIONS

5.1         Contractor Versus Governme nt Performance            A5-1
5.2         Warranty                                             A5-1


                                     A-i
                           TABLE OF CONTENTS
                                                               Page

5.3      Government-Furnished Property                         A5-1
5.4      Government-Furnished Information                      A5-2
5.5      Acquisition Streamlining                              A5-2
5.6      Security Considerations                               A5-2
5.7      Make or Buy                                           A5-2
5.8      Environmental and Energy Conservation Objectives      A5-3
5.9      Priorities, Allocations and Allotments                A5-3
5.10     Industrial Prepare dness                              A5-3
5.11     National Technology and Industrial Base               A5-4
5.12     Other Considerations                                  A5-5

SECTION 6 TECHNICAL CONSIDERATIONS

6.1      Test and Evaluation                                   A6-1
6.2      Metric System of Measurement                          A6-1
6.3      Reliability, Maintainability, and Quality Assurance   A6-1
6.4      Additional Technical Considerations                   A6-2
6.4.1    Systems Safety Program                                A6-2
6.4.2    Standard Electronic Modules                           A6-2
6.4.3    Electromagnetic Environmental Effects                 A6-2
6.4.4    Frequency Allocations and Frequency Assignments       A6-2
6.4.5    Configuration Management                              A6-2
6.4.6    Environmental Effects on Performance                  A6-3
6.4.7    Unique Mapping, Charting, and Geodesy Products        A6-3
6.4.8    Modular Open Systems Approach (MOSA)                  A6-3
6.4.9    Mission Critical Computer Resources                   A6-3

SECTION 7 LOGISTICS CONSIDERATIONS

7.1      Contractor or Agency Support                          A7-1
7.2      Standardization                                       A7-1
7.3      Continuous Acquisition and Life-Cycle Support         A7-1
          (CALS) Acquisition, and Program Integrated
            Digital Environme nt (IDE)
7.4      Component Breakout                                    A7-2
7.5      Spare and Repair Parts                                A7-2
7.6      Technical Data                                        A7-2




                                   A-ii
                     TABLE OF CONTENTS
                                                Page

SECTION 8 PLAN OF ACTION FOR EACH PROPOSED CONTRACT

8.1      Item Description                       A8-1
8.2      Estimated Cost                         A8-1
8.3      Sources                                A8-1
8.4      Competition                            A8-2
8.5      Source Selection Procedures            A8-2
8.6      Contracting Considerations             A8-3
8.7      Milestones for the Acquisition Cycle   A8-4
8.8      Product or Services Descriptions       A8-5
8.9      Management Information Require ments   A8-5
8.10     Contract Administration                A8-5
8.11     Other Considerations                   A8-5




                                A-iii
                                    SECTION 1
             ACQUISITION BACKGROUND AND OBJECTIVES
                      1.1 Statement of Need

FAR 7.105(a)(1) and   Introduce the plan by a brief statement of need. Include
DFARS 207.105(a)(1)   applicability of an Acquisition Decision Memorandum (ADM), Defense
                      Acquisition Board (DAB), and/or internal service reviews.

                      1.2 Historical Summary

FAR 7.105(a)(1)       Summarize the technical and contractual history of the acquisition.
                      Include, as appropriate:

                            A brief statement indicating how long the program has been in
                             development and/or production and how long it is expected to
                             run.

                            A matrix of contracts awarded for the major end items for the
                             past five years, with contract number, contractor, contract type,
                             nomenclature of item/service, quantities, and historical or
                             estimated contract values. This should be presented in a brief,
                             summary chart.

                            The competition/sole source strategy for each major element of
                             program. If complex, include this information on the chart or
                             matrix mentioned above.

                            Two or three brief sentences to add any further information on
                             the history of the program that you consider useful to reviewers.
                             Do not use a multi-page, detailed history.

                      1.3 Applicable Conditions

FAR 7.105(a)(2)       State all significant conditions affecting the acquisition, such as (i)
                      requirements for compatibility with existing or future systems or
                      programs and (ii) any known cost, schedule, and capability or
                      performance constraints.




                                           A1-1
                   1.4 Capability or Performance

FAR 7.105(a)(4)    Specify the required capabilities or performance characteristics of the
                   supplies or the performance standards of the services being acquired
                   and state how they are related to the need.

                   1.5 Delivery or Performance-Period Require ments

FAR 7.105(a)(5)    Describe the basis for establishing delivery or performance-period
                   requirements (see FAR Subpart 11.4). For services acquisitions,
                   indicate whether the contract will be for a term of performance or a
                   completion date. Explain and provide reasons for any urgency if it
                   results in concurrency of development and production or constitutes
                   justification for not providing for full and open competition.

                   Note: For example, timely delivery might be required in order for the
                   Government to meet its obligations under another contract, or if timely
                   delivery or performance is unusually important to the Government,
                   liquidated damages considerations might be required.

                   1.6 Identification of Participants in Acquisition Plan Preparation

FAR 7.105(b)(21)   List the individuals who participated in preparing the acquisition plan,
                   giving contact information and area of responsibility for each.




                                       A1-2
                                          SECTION 2

          COST, BUDGET AND FUNDING CONSIDERATIONS
                         2.1 Cost

FAR 7.105(a)(3)          Set forth the established cost goals for the acquisition and the rationale
                         supporting them, and discuss related cost concepts to be employed,
                         including, as appropriate, the following items:

                         2.1.1 Total Owne rship Cost

                         Not applicable to services acquisitions.

FAR 7.105(a)(3)(i) and   Discuss how Total Ownership Cost (TOC) will be considered DFARS
207.103(i)(ii)           in all acquisitions of systems and/or equipment. If not used,
                         explain why. If appropriate, discuss the cost model used to develop TOC
                         estimates.

                         Note: Total Ownership Cost (TOC) (formerly called life-cycle cost)
                         includes all costs associated with the research, development, procurement,
                         operation, logistical support and disposal of an individual weapon system
                         including the total supporting infra-structure that plans, manages and
                         executes that weapon system program over its full life. TOC also includes
                         the cost of require- ments for common support items and systems that are
                         incurred because of introduction of that weapon system, but excluding
                         indirect “non- linked” Navy infrastructure costs that are not affected by
                         individual weapon system’s development, introduction, deployment or
                         operations. Software is also included.

                         2.1.2 Design-to-Cost

                         Not applicable to services acquisitions.

 FAR 7.105(a)(3)(ii)     Describe the design-to-cost objective(s) and underlying assump- tions,
                         including the rationale for quantity, learning-curve, and economic
                         adjustment factors. Describe how objectives are to be applied, tracked,
                         and enforced. Indicate specific related solicitation and contractual
                         requirements to be imposed.

                         Note: DFARS 207.103 (i)(i) requires design-to-cost principles
                         be applied: (1) in all major defense acquisition programs



                                                A2-1
                       DoDD 5000.1, (The Defense Acquisition System), unless
                       exempted by the Secretary of Defense, and (2) to the acquisition of
                       systems, subsystems, and components below the thresholds for
                       major defense acquisition programs, to the extent prescribed in
                       DoDD 5000.1.

                       Design-to-cost activities are those which are undertaken to meet
                       the cost objectives through explicit design activities. Cost as an
                       Independent Variable (CAIV) depends on design-to-cost type
                       activities to meet the objectives by instilling cost-consciousness
                       into the designers, stimulating them to challenge requirements, and
                       illuminating their cost progress.

                       CAIV has refocused design-to-cost to consider cost objectives for the
                       total life cycle of the program and to view cost as an independent
                       variable with an understanding it may be necessary to trade-off
                       performance to stay within cost objectives and constraints.

                       Under this concept, cost is a design constraint during the design and
                       development phases and a management discipline throughout the
                       acquisition and operation of the system or equipment.

                       2.1.3 Application of Should-Cost

                       Not applicable to services acquisitions.

FAR 7.105(a)(3)(iii)   Describe the application of should-cost analysis to the acquisition
                       (see FAR 15.407-4).

                       Note: The objective of should-cost reviews is to promote both
                       short and long-range improvements in the contractor’s economy
                       and efficiency in order to reduce the cost of performance on
                       Government contracts. These reviews evaluate the economy and
                       efficiency of the contractor’s existing work force, methods,
                       materials, facilities, operating systems, and management. The
                       should-cost reviews are accomplished by a multi- functional team
                       of Government contracting, contract administration, p ricing, audit,
                       and engineering representatives.




                                         A2-2
                      2.2 Budgeting and Funding

                      See Appendix B for sample funding chart and follow the guidance
                      in 2.2.1 and 2.2.2.

                      2.2.1 Budget

FAR 7.105(b)(5)       Include budget estimates, explain how they were derived, and
                      discuss the schedule for obtaining adequate funds at the time they
                      are required (see FAR Subpart 32.7).

DFARS 207.105(b)(5)   Include specific reference to budget line items and program
                      elements, where applicable, estimated production unit cost, and the
                      total cost for remaining production.

                      Briefly state how the budget estimates were developed. One or
                      two sentences of notes at the bottom of the funding chart (see
                      Appendix B) is sufficient. Purpose is to describe pricing
                      methodology used (e.g., parametric, historical, bottom- up,
                      catalogue, etc.).

                      Briefly discuss any Program Objectives Memorandum (POM)
                      considerations that bear on the intended business strategy. If none,
                      simply state that the funds represented in the funding chart are
                      considered adequate to execute the stated strategy.

                      2.2.2 Funding

                      Current funding by appropriation and fiscal year. Identify total
                      cost, contract cost, Other Government Activities (OGA) cost and
                      quantities by appropriation, by year. If a joint program, show other
                      service quantities and dollars, and combined program, separately.
                      Identify applicable program element (P.E.) and project/task
                      numbers for all Navy funds. Identify the budget (e.g., "FY 00
                      President's Budget") represented by this matrix. Any elements of
                      this matrix covered by other APs should merely reference those
                      APs and show the dollar value covered in each other AP.




                                          A2-3
                                     SECTION 3

                  ALTERNATIVES, TRADE-OFFS, AND RISKS
                        3.1 Alte rnatives

 FAR 7.105(a)(1) and    Discuss feasible acquisition alternatives, the impact of
 DFARS 207.105(a)(A)    prior acquisitions on those alternatives, and any related in-
                        house effort. Describe the options in the Analysis of
                        Alternatives (AOA) or Acquisition Decision Memorandum (ADM),
                        and delineate which option the acquisition plan supports.

                        Reference the approved AOA; include the approval date.

                        3.2 Trade-Offs

FAR 7.105(a)(6)         Discuss the expected consequences of trade-offs among the various
                        cost, capability or performance, and schedule goals.

                        Note: Cost/performance/schedule trade-offs should be shaping the
                        requirements and proposed design approaches on a cost-effectiveness
                        basis. Cost-effectiveness will be modified by affordability
                        considerations as the trade-offs start to focus on the cost-effective
                        alternatives that are practical from a budget point-of-view. CAIV
                        should be utilized to make life-cycle affordability decisions. Cost
                        reductions should be accomp- lished through cost/performance trade-
                        off analyses, which should be conducted before an acquisition
                        approach is finalized.

                        3.3 Risks

FAR 7.105(a)(7)         Discuss technical, cost, and schedule risks and describe what efforts
                        are planned or underway to reduce risk and the conse-quences of
                        failure to achieve goals. If concurrency of develop-ment and
                        production is planned, discuss its effects on cost and schedule risks.

                        The acquisition strategy should include identification of the risk areas
                        of the program and a discussion of how the PM intends to manage
                        those risks. Discuss compliance and implementation of Production
                        Readiness Reviews including major areas of technical risk. Describe
                        corrective action planned or underway to reduce the risk of breaching
                        performance, quality, cost and schedule thresholds. Provide a
                        comparison of any recent test results with the goals established for the
                        item or program.

                                            A3-1
                                     SECTION 4

                                  MILESTONES
                       4.1 Milestone Chart Depicting the Objectives of the Acquisition

DFARS 207.105(a)(C)    Include a milestone chart depicting the acquisition objectives.
                       Include milestones for test events, preliminary design review (PDR),
                       critical design review (CDR), production readiness review (PRR),
                       contract award(s), option exercises, and for configuration/design freeze
                       and imposition of configuration control. In a concise note on the chart,
                       state whether formal configuration control is to be imposed, and if not,
                       how configuration is to be managed. A sample milestone chart is
                       provided in Appendix C.

                       4.2 Milestones for Updating the Acquisition Plan

DFARS 207.105(a)(D)    Indicate when the plan will be updated. Updates should be scheduled to
                       coincide with MDA reviews and the transition from one phase to
                       another (e.g., Engineering and Manufacturing Development to
                       Production and Deployment).

                       4.3 Logistics Milestones

                       This paragraph is not applicable to services acquisitions.

FAR 7.105(b)(2)(iii)   Identify the key logistics milestones, such as technical data delivery
                       schedules and acquisition method coding conferences, that affect
                       competition.

                       4.4 Approval for Low-Rate Initial Production (LRIP) or Full Rate
                       Production (FRP) (or Ship Construction)

                       This paragraph is not applicable to services acquisitions.

DFARS 207.105(a)        Indicate the date approval for low-rate initial production or full
(1)(B)                  rate production (or ship construction) has been or will be obtained. If
                        waivers are requested, describe the need for the waivers.




                                           A4-1
                                     SECTION 5

                       BUSINESS CONSIDERATIONS
                       5.1 Contractor Versus Governme nt Performance

FAR 7.105(b)(8)        Address the consideration given to OMB Circular No. A-76 (see FAR
                       Subpart 7.3).

                       Note: OMB Circular A-76 provides that it is the policy of the
                       Government to (a) rely generally on private commercial sources for
                       supplies and services, if certain criteria are met, while recognizing that
                       some functions are inherently Governmental and must be performed by
                       Government personnel, and (b) give appropriate consideration to
                       relative cost in deciding between Government performance and
                       performance under contract. For further guidance, see DoD Instruction
                       4100.33 “Commercial Activities Program Procedures” (Code of Federal
                       Regulations (CFR), Title 32, Chapter I, Part 169A, and OPNAVINST
                       4860.7C, “Navy Commercial Activities (CA) Program” dated June 7,
                       1999.

FAR 7.105(b)(9)        Inherently Governmental Functions. Address the consideration given
                       to OFPP Policy Letter 92-1, “Inherently Governmental Functions” (see
                       FAR Subpart 7.5).

                       5. 2 Warranty


FAR 7.105(b)(13)(ii)   Describe any planned use of warranties (see FAR Subpart 46.7, DFARS
                       Subpart 246.7, and NMCAG Subpart 5246.7 for further guidance).

                       Note: Paragraph 2.3.16.3.10, “Warranties” of the Defense Acquisition
                       Guidebook states that the program manager should examine the value
                       of warranties on major systems and pursue them when appropriate and
                       cost- effective. If appropriate, the program manager should incorporate
                       warranty requirements into major systems contracts in accordance with
                       FAR Subpart 46.7.

                       5. 3 Government-Furnished Property

FAR 7.105(b)(14)       Indicate any property to be furnished to contractors, including material
                       and facilities, and discuss any associated considera-tions, such as its
                       availability or the schedule for its acquisition (see FAR Part 45).


                                           A5-1
                      5. 4 Government-Furnished Information

FAR 7.105(b)(15)      Discuss any Government information, such as manuals, drawings, and
                      test data, to be provided to prospective offerors and contractors.

                      5. 5 Acquisition Streamlining

FAR 7.105(a)(8)       Discuss plans and procedures to (i) encourage industry partici-pation by
                      using draft solicitations, pre-solicitation conferences, and other means
                      of stimulating industry involvement during design and development in
                      recommending the most appropriate application and tailoring of
                      contract requirements; (ii) select and tailor only the necessary and cost
                      effective requirements; and (iii) state the timeframe for identifying
                      which of those specifica-tions and standards, originally provided for
                      guidance only, shall become mandatory.

DFARS 207.105(a)(8)   Policy direction on acquisition streamlining is contained in DoDD
                      5000.1 and paragraph 4.3.3. “Innovation” of the Defense Acquisition
                      Guidebook. See MIL-HDBK-248B (Acquisition Streamlining) for
                      guidance on streamlining performance requirements, the technical
                      package, and the contract strategy.

                      Describe the market research efforts planned or undertaken to identify
                      nondevelopmental items (NDI). See DoD SD-2 entitled "Buying
                      Commercial & Nondevelopmental Items: A Handbook" dated 1 April
                      1996, SD-5 titled “Market Research - Gathering Information about
                      Commercial Products and Services” dated July 1997, and SD-15 titled
                      “Performance Specification Guide” dated 29 June 1995, for further
                      guidance on acquisition streamlining.

                      5. 6 Security Considerations

FAR 7.105(b)(17)      For acquisitions dealing with classified matters, discuss how adequate
                      security will be established, maintained, and monitored (see FAR
                      Subpart 4.4).

                      5. 7 Make or Buy

                      This paragraph is not applicable to services acquisitions.

FAR 7.105(b)(11)      Discuss any consideration given to make-or-buy programs (see FAR
                      Subsection 15.407-2).



                                          A5-2
                       5. 8 Environmental and Energy Conservation Objectives

FAR 7.105(b)(16)       Discuss all applicable environmental and energy conservation
                       objectives associated with the acquisition (see FAR Part 23), the
                       applicability of an environmental assessment or environmental impact
                       statement (see 40 CFR 1502), the proposed resolution of environmental
                       issues, and any environmentally-related requirements to be included in
                       solicitations and contracts.

DFARS 207.105(b)(16)   Discuss actions taken to ensure either elimination of or authorization to
                       use Class I ozone-depleting chemicals and substances (see DFARS
                       Section 211.271 and NMCARS Section 5211.271).

DFARS 207.105(b)       Address compliance with DoD Instruction 4715.4, Pollution
                       Prevention.

                       5. 9 Priorities, Allocations and Allotments

FAR 7.105(b)(7)        When urgency of the requirement dictates a particularly short delivery or
                       performance schedule, certain priorities may apply. If so, specify the
                       method for obtaining and using priorities, allocations, and allo tments,
                       and the reasons for them (see FAR Subpart 11.6). Identify the Defense
                       Priority rating (DO/DX); e.g., DO A3 for ships.

                       Note: DoD implementation of the Defense Priorities and Alloca-tions
                       System is in DoDD 4400.1, “Defense Production Act
                       Programs and DoDD 4400.1-M, “Department of Defense Priorities and
                       Allocations Manual.”

                       5. 10 Industrial Prepare dness (if applicable)

                       This paragraph is not applicable to services acquisitions.

FAR 7.105(b)(19)       Discuss the industrial preparedness program.

DFARS 207.105(b)       Provide the program's industrial preparedness strategy that
(19)(B)                assesses the capability of the U.S. industrial base to achieve identified
                       surge and mobilization goals. If no industrial preparedness strategy has
                       been developed, provide supporting rationale for this position.

                       If in the industrial preparedness strategy, the development of a detailed
                       industrial preparedness plan was determined to be applicable, include
                       the plan by text or reference. If the development of the industrial


                                            A5-3
                   preparedness plan was determined not to be applicable, summarize the
                   details of the analysis forming the basis of this decision.

                   If the program involves peacetime and wartime hardware configurations
                   that are supported by logistics support plans, identify their impact on
                   the industrial preparedness plan.

                   5. 11 National Technology and Industrial Base

DFARS 207.105(b)   For major defense acquisition programs, address the following
(19)(A)            (P.L. 102-484, Section 4220):

                   (1) An analysis of the capabilities of the national technology and
                   industrial base to develop, produce, maintain, and support such
                   program, including consideration of the following factors related to
                   foreign dependency (P.L. 102-484, Section 4219(h):

                      (i) The availability of essential raw materials, special alloys,
                      composite materials, components, tooling, and production test
                      equipment for the sustained production of systems fully capable of
                      meeting the performance objectives established for those systems;
                      the uninterrupted maintenance and repair of such systems; and the
                      sustained operation of such systems.

                       (ii) The identification of items specified in paragraph (1)(i)
                      above that are available only from sources outside the national
                      technology and industrial base.

                      (iii) The availability of alternatives for obtaining such items
                      from within the national technology and industrial base if such items
                      become unavailable from sources outside the national technology
                      industrial base; and an analysis of any military vulnerability that
                      could result from the lack of reasonable alternatives.

                      (iv) The effects on the national technology and industrial base that
                      result from foreign acquisition of firms in the United States.

                   (2) Consideration of requirements for efficient manufacturing during
                   the design and production of the systems to be procured under the
                   program.




                                       A5-4
                   (3) The use of advanced manufacturing technology, processes, and
                   systems during the research and development phase and the production
                   phase of the program.

                   (4) To the maximum extent practicable, the use of contract solicitations
                   that encourage competing offerors to acquire, for use in the
                   performance of the contract, modern technology, production equipment,
                   and production systems (including hardware and software) that increase
                   the productivity of the offerors and reduce the life-cycle costs.

                   (5) Methods to encourage investment by U.S. domestic sources in
                   advanced manufacturing technology production equipment and
                   processes through:

                      (i) Recognition of the contractor’s investment in advanced
                      manufacturing technology production equipment, processes,
                      and organization of work systems that build on workers’ skill
                      and experience, and work force skill development in the
                      development of the contract objective; and

                      (ii) Increased emphasis in source selection on the efficiency of
                      production.

                    (6) Expanded use of commercial manufacturing processes rather than
                   processes specified by DoD.

                   (7) Elimination of barriers to, and facilitation of, the integrated
                   manufacture of commercial items and items being produced under DoD
                   contracts.

                   (8) Expanded use of commercial items, commercial items with
                   modifications, or to the extent commercial items are not available,
                   nondevelopmental items (see FAR 10).

                   5. 12 Other Considerations

FAR 7.105(b)(19)   Discuss, as applicable, the Defense Production Act, the Occupational
                   Safety and Health Act, foreign sales implications, and any other matters
                   germane to the plan not covered elsewhere.




                                       A5-5
                                      SECTION 6

                       TECHNICAL CONSIDERATIONS
                        6. 1 Test and Evaluation

FAR 7.105(b)(12)        To the extent applicable, describe the test program of the contractor and
                        the Government. Describe the test program for each major phase of a
                        major system acquisition. If concurrency is planned, discuss the extent
                        of testing to be accomplished before production release.

                        Provide TEMP number and approval date. If not yet approved, provide
                        approval status.

                        6. 2 Metric System of Measurement

FAR 7.103(m)            Discuss use of the metric system of measurement in accord ance
                        with 15 U.S.C. 205b (see 11.002(b)) and agency metric plans
                        and guidelines.

                        6. 3 Reliability, Maintainability, and Quality Assurance

FAR 7.105(b)(13)(ii)    Describe the reliability, maintainability, and quality assurance
                        (RM&QA) requirements for the program.

DFARS 207.105(b)        In discussing reliability and maintainability (R&M), discuss the
(13)(ii)                mission profile, R&M program plan, R&M predictions, redundancy,
                        qualified parts list, parts and material qualification, R&M requirements
                        imposed on vendors (subcontractors), failure analysis, corrective action
                        and feedback, and R&M design reviews and trade-off studies.

                        Also discuss corrosion and mitigation plans.

                        Using the templates of DOD 4245.7-M (Transition from Development
                        to Production...Solving the Risk Equation) and NAVSO P-6071(need to
                        be sure this document is current) (Best Practices: How to Avoid
                        Surprises in the World's Most Complicated Technical Process), review
                        each template (less funding template) for application to the program.
                        The templates are guidelines. Their application must be based on
                        disciplined engineering and technical rationale. Not all templates apply
                        to every program. Few, if any, programs should invoke all 47
                        templates. Each applicable template must be tailored specifically to
                        each program. Address those templates from which the program
                        deviates. Identify a point of contact (name, code, telephone number,

                                            A6-1
and e- mail address) for answering inquiries on the RM&QA portion of
this AP. If there is a RM&QA Plan, reference the plan and provide
approval date.

6.4 Additional Technical Considerations

AP approval authorities may elect to have one or more of the following
topics addressed in APs:

6.4.1 Systems Safety Program

Discuss Systems Safety Program requirements in accordance with MIL-
STD-882C and Change Notice 1, “System Safety Program
Requirements.”

6.4.2 Standard Electronic Modules

Discuss the use of Standard Electronic Modules (SEM) in
accordance with MIL-STD-1378E, “Requirements for Employing
Standard Electronic Modules.”

6.4.3 Electromagnetic Environmental Effects

Discuss Electromagnetic Environmental Effects (E3 ). All
electric or electronic systems shall be designed to be fully compatible in
the intended electromagnetic operational environment. See Paragraph
7.6.4.2.2, “Electromagnetic Environmental Effects (E3)” of the Defense
Acquisition Guidebook and OPNAVINST 2450.2, “Electromagnetic
Compatibility Program Within the Department of the Navy.”

6.4.4 Frequency Allocations and Frequency Assignments

Discuss frequency allocations and frequency assignments. See
OPNAVINST 2400.20E, “Navy Management of the Radio Frequency
Spectrum” for guidance.

6.4.5 Configuration Management

Discuss Configuration Management. If there is a Configuration
Management Plan so indicate. The Defense Acquisition Guidebook,
paragraph 4.2.3.6, states that Configuration Management is the
application of sound business practices to establish and maintain
consistency of a product's attributes with its requirements and product
configuration information. It involves interaction among government

                    A6-2
and contractor program functions such as systems engineering, design
engineering, logistics, contracting, and manufacturing in an Integrated
Product Team environment. Configuration management includes
system hardware, software, and documentation (data). A configuration
management process guides the system products, processes, and related
documentation, and facilitates the development of open systems.
Configuration Management efforts result in a complete audit trail of
decisions and design modifications.

6.4.6 Environmental Effects on Performance

Discuss environmental effects (oceanographic and meteorological) that
relate to the system's expected performance.

6.4.7 Unique Mapping, Charting, and Geodesy Products
Discuss unique Mapping, Charting, and Geodesy products
required for the system in accordance with DoDI 5000.56,
“Programming Unique Mapping, Charting, and Geodesy Requirements
for Developing Systems.”

6.4.8 Modular Open Systems Approach (MOSA)

Address the use of a Modular Open Systems Approach (MOSA).
Paragraphs 2.3.15, “Modular Open Systems Approach”, 4.4.1, “Open
Systems Design” and 5.4.1.1.2, “Life-Cycle Logistics (LCL)
Considerations During Concept Refinement” of the Defense Acquisition
Guidebook, provide advice and guidance on this subject.

6.4.9 Mission Critical Computer Resources

Discuss software development and documentation in accordance
with IEEE/EIA 12207 and DOD-STD-2168 (Defense System
Software Quality Program). Discuss Software Acceptance Testing
in accordance with TADSTAND E.

Discuss the computer security requirement for the program. State
when the Computer Security Plan, Accreditation Plans, etc. have
been or will be approved. State when accreditation was or will be
obtained. Provide the name, code, telephone number, and e- mail
address of the Computer Security Officer for the program.

Note: See SECNAVINST 5239.3, Department of the Navy
Information Systems Security (INFOSEC) Program, for guidance
on Mission Critical Computer Resources.

                 A6-3
                                           SECTION 7

                         LOGISTICS CONSIDERATIONS
                       This Section is not applicable to services acquisitions.

                           7.1 Contractor or Agency Support

FAR 7.105(b)(13)(i)        Describe the assumptions determining contractor or agency support,
                           both initially and over the life of the acquisition, including
                           consideration of contractor or agency maintenance and servicing (see
                           FAR Subpart 7.3) and distribution of commercial items.

DFARS 207.105(b)          Describe the extent of integrated logistic support (ILS) planning
(13)(i)                   to date, including references to approved plans.

                           Reference the ILS Plan and provide approval date. If not approved,
                           provide approval status.

                           7.2 Standardization

FAR 7.105(b)(13)(iv)       Describe standardization concepts, including the necessity to designate,
                           in accordance with agency procedures, technical equipment as
                           "standard" so that future purchases of the equipment can be made from
                           the same manufacturing source.

DFARS 207.105(b)
(13)(iv)                    See DoDD 5000.1, The Defense Acquisition System, and DoD 5000.2-
                           R, Mandatory Procedures for Major Defense Acquisition Programs
                           (MDAPs) and Major Automated Information System (MAIS)
                           Acquisition Programs, for procedures on standardization and on the
                           DoD Parts Control Program. Also see DoD 4120.24-M, Defense
                           Standardization Program (DSP) Policies and Procedures.

                           Note: See paragraph 4.4.3, “Standardization” of the Defense
                           Acquisition Guidebook for additional guidance.

                           7.3 Continuous Acquisition and Life-Cycle Support (CALS)
                           Acquisition, and Program Integrated Digital Environment (IDE)

DFARS 207.105(b)           Describe the extent of Integrated Digital Environment (IDE)
(13)(S-70)                 implementation (see Defense Acquisition Guidebook, Section 11.12,
                           “Integrated Digital Environment (IDE).”


                                                A7-1
                        Note: Section 11.12, “Integrated Digital Environment (IDE) of the
                        Defense Acquisition Guidebook provides that solicitations should
                        require IDE proposals to support system life cycle activities. Unless
                        analysis verifies prohibitive cost or time delays, or a potential
                        compromise of national security, new contracts should require the
                        contractor to provide on- line access to programmatic and technical data.
                        Contracts should give preference to on-line access (versus data
                        exchange) through a contractor information service or existing IT
                        infrastructure. While contracts should minimally specify the required
                        functionality and data standards, the data formats of independent
                        standards-setting organizations should take precedence. The issue of
                        data formats and transaction sets should be independent of the method
                        of access or delivery.

                        7.4 Component Breakout

FAR 7.105(b)(2)(ii)     Identify the major components or subsystems. Discuss component
                        breakout plans relative to these major components or subsystems.
                        Describe how competition will be sought, promoted, and sustained for
                        these components or subsystems.

                        7.5 Spare and Repair Parts

FAR 7.105(b)(2)(iii)    Describe how competition will be sought, promoted, and sustained for
                        spares and repair parts.

                        7.6 Technical Data

FAR 7.105(b)(13)(iii)   Describe the requirements for contractor data (including repurchase
                        data) and data rights, their estimated cost, and the use to be made of the
                        data (see DFARS Subparts 227.71 and 227.72).

                        Discuss the plan for acquiring and managing the acquisition of technical
                        data, with particular emphasis on technical data packages and technical
                        manuals. The discussion should address:

                                 The overall program objectives, by program phase, for the
                                  acquisition of technical data, including the major types of data
                                  to be acquired and the uses to which they will be put. Discuss
                                  the results of cost effectiveness analyses related to those
                                  objectives.

                                 Contractor use and certification of the technical data package
                                  (TDP).
                                            A7-2
        The planned methodology and schedule for conducting major
         technical data management events; e.g., validation/final
         acceptance reviews, and identification of the product baseline
         configuration that the TDP describes.

        Strategies for minimizing the amount of technical data
         delivered to the government with other than unlimited rights.

APs for follow-on procurements should address whether or not in-
process and final reviews of technical data, provided by the previous
contractor and intended to be provided to a follow-on contractor, were
made and the data determined to be adequate. If not, explain why.




                   A7-3
                                SECTION 8

      PLAN OF ACTION FOR EACH PROPOSED CONTRACT
                  Note: If more than one contract is anticipated, the plan for each award
                  should be presented in a separate section; e.g.., Section 8 for the first
                  contract, Section 9 for the second contract, etc.

                  8.1 Item Description

FAR 7.103(l)(2)   Provide a brief description of the item which is being procured under
                  the contract. A picture, drawing, diagram, or other graphic
                  representation may be included when necessary for adequate
                  description.

                  8.2 Estimated Cost

                  Provide the estimated cost of the proposed acquisition. Identify funds
                  by fiscal year and appropriation account. For acquisitions that
                  contemplate the use of options or a multiple phased approach,
                  separately identify the estimated cost for each option/phase. For
                  services contracts, provide man-hours. If options are planned, provide
                  man-hours for each option. Provide this estimated cost data in chart,
                  matrix, or graphic form. Include quantities, or man- hours for services,
                  for all significant elements.

                  Note: See Appendix D for a sample Estimated Cost chart.

                  8.3 Sources

FAR 7.105(b)(1)   Indicate the prospective sources of supplies and/or services that
                  can meet the need. Consider required sources of supplies and/or
                  services (see FAR Part 8). Include consideration of small business,
                  HUBZone small business, small disadvantaged business, and women-
                  owned small business concerns (see FAR Part 19), and the impact of
                  any bundling that might affect their participation in the acquisition (see
                  FAR Section 7.107 (14 U.S.C. 644(e)). Address the extent and results
                  of the market research and indicate their impact on the various elements
                  of the plan (see FAR Part 10).




                                      A8-1
                      8.4 Competition

FAR 7.105(b)(2)(i)    Full and Open Competition. Describe how competition will be sought,
                      promoted, and sustained throughout the course of the acquisition.

                      Full and Open Competition After Exclusion of Sources. If exclusion of
                      source(s) is proposed, identify the applicable statutory authority
                      permitting exclusion. Cite the basis in FAR 6.202 or 6.203 permitting
                      the exclusion. Where FAR 6.202 is cited, provide supporting
                      information required by DFARS 206.202(b)(i).

FAR 17.105(b)(2)(i)   Other Than Full and Open Competition. If full and open competition is
                      not contemplated, cite the authority in FAR 6.302, discuss the basis for
                      the application of that authority, identify the source(s), and discuss why
                      full and open competition cannot be obtained.

                      Address any restrictions on foreign participation at the prime or
                      subcontract level.

                      Notes:

                      (1) FAR 7.104(c) states that "if the plan proposes using other than full
                      and open competition, the plan shall also be coordinated with the
                      cognizant competition advocate."

                      (2) DFARS 207.102 states “when a class justification for other than full
                      and open competition has been approved, planning for competition shall
                      be accomplished consistent with the terms of that approval.”

FAR 7.105(b)(2)(iv)   Subcontract Competition. When effective subcontract competition is
                      both feasible and desirable, describe how such subcontract competition
                      will be sought, promoted, and sustained throughout the course of the
                      acquisition. Identify any known barriers to increasing subcontract
                      competition and address how to overcome them. For sole-source items,
                      provide plans for increasing the level of subcontractor competition.

                      8.5 Source Selection Procedures

FAR 7.105(b)(3)       Discuss the source selection procedures for the acquisition, including
                      the timing for submission and evaluation of proposals,
                      and the relationship of evaluation factors to the attainment of the
                      acquisition objectives (see FAR Subpart 15.3). Address the use of best
                      value in the evaluation of proposals and source selection.


                                          A8-2
                  Note: FAR 15.302 states “The objective of source selection is to select
                  the proposal that represents the best value.” FAR 15.101 provides that
                  best value in negotiated acquisitions can be obtained by using any one
                  or combination of source selection approaches. In different types of
                  acquisitions, the relative importance of cost or price may vary. For
                  example, in acquisitions where the requirement is clearly definable and
                  the risk of unsuccessful contract performance is minimal, cost or price
                  may play a dominant role in source selection. The less definitive the
                  requirement, the more development work required, or the greater the
                  performance risk, the more technical or past performance considera-
                  tions may play a dominant role in source selection.

                  Address the use of past performance in the source selection process.

                  Note: FAR 15.304(c)(3)(ii) states that “...past performance shall be
                  evaluated in all source selections for negotiated competitive
                  acquisitions issued on or after January 1, 1999, for acquisitions
                  expected to exceed $100,000.”

                  For solicitations involving bundling that offer a significant
                  opportunity for subcontracting, the contracting officer must
                  include a factor to evaluate past performance indicating the
                  extent to which the offeror attained applicable goals for small
                  business participation under contracts that required
                  subcontracting plans.

                  Past performance need not be evaluated if the contracting officer
                  documents the reason past performance is not an appropriate evaluation
                  factor for the acquisition.

                  8.6 Contracting Considerations

FAR 7.105(b)(4)   For each contract contemplated, discuss contract type selection (see
                  FAR Part 16); use of multiyear contracting, options, or other special
                  contracting methods (see FAR Part 17); modular contracting, contract
                  bundling, any special clauses, special solicitation provisions, or FAR
                  deviations required (see FAR Subpart 1.4); whether sealed bidding or
                  negotiation will be used and why; whether equipment will be acquired
                  by lease or purchase (see FAR Subpart 7.4) and why; and any other
                  contracting considerations.




                                      A8-3
                   Note: See additional guidance in the following paragraphs of the
                   Defense Acquisition Guidebook:

                   Paragraph 2.3.16.3.2, “Modular Contracting” provides that for major
                   IT acquisitions, modular contracting, as described in FAR Section
                   39.103 should be used to the extent practicable. Modular contracting
                   may also be considered for other acquisition program Paragraph
                   2.3.16.3.3, “Contract Bundling” states that FAR Section 7.103(s)
                   requires that acquisition planners, to the maximum extent practicable,
                   avoid unnecessary and unjustified bundling that precludes small
                   business participation as contractors. As a result of this direction, DoD
                   Instruction 5000.2 requires a Benefit Analysis and Determination. The
                   program manager should consult the Office of Small and
                   Disadvantaged Business Utilization website for additional information
                   concerning this information requirement.

                   Paragraph 2.3.16.3.5, “Multi- Year Contracting” provides that the
                   acquisition strategy should address the program manager's
                   consideration of multiyear contracting for full rate production, and
                   address the program manager's assessment of whether the production
                   program is suited to the use of multiyear contracting based on the
                   requirements in FAR Subpart 17.1.

                   8.7 Milestones for the Acquisition Cycle

FAR 7.105(b)(20)   Address the following steps and any others, as appropriate:

                      Acquisition plan approval
                      Statement of work
                      Specifications
                      Data requirements
                      Completion of acquisition-package preparation
                      Purchase request
                      Justification and approval for other than full and open
                      competition where applicable and/or any required D&F
                      approval
                      Issuance of synopsis
                      Issuance of solicitation
                      Evaluation of proposals, audits, and field reports
                      Beginning and completion of negotiations
                      Contract preparation, review, and clearance
                      Contract award



                                       A8-4
                      8.8 Product or Services Descriptions

                      Note: This paragraph is not applicable to AIS acquisitions.

FAR 7.105(b)(6)       Explain the choice of product or service description types (including
                      performance-based contracting descriptions) to be used in the
                      acquisition.

DFARS 207.105(b)(6)   For development acquisitions, describe the market research undertaken
                      to identify commercial items, commercial items with modifications, or
                      nondevelopmental items (see FAR Part 10) that could satisfy the
                      acquisition objectives.

                      8.9 Management Information Require ments

FAR 7.105(b)(10)      Discuss, as appropriate, what management system will be used by the
                      Government to monitor the contractor's effort.

                      Note: DoDI 5000.2 calls for application of an Earned Value
                      Management System (EVMS) on significant contracts and subcontracts
                      within all acquisition programs, including highly sensitive classified
                      programs and major construction programs.
                      This also includes significant contracts [$73M+ RDT&E, and $315M+
                      Procurement (in FY 2000 constant dollars)] executed for foreign
                      governments and for specialized organizations such as the Defense
                      Advanced Research Projects Agency (DARPA), and significant
                      acquisition effort performed by Government activities. Compliance
                      with the EVMS criteria is not required on Firm Fixed Price (FFP)
                      contracts, time and materials contracts, and contracts which consist
                      mostly of level-of-effort work.

                      8.10 Contract Administration

FAR 7.105(b)(18)      Describe how the contract will be administered. In contracts for
                      services, include how inspection and acceptance corresponding to
                      the work statement’s performance criteria will be enforced.

DFARS 207.105(b)      Discuss the level of Government administration anticipated
( 19)(D)              or currently performed and any change proposed by the contract
                      administration office.

                      8.12 Other Considerations, as applicable.



                                       A8-5
                                        SAMPLE
                                     FUNDING CHART

Provide current funding data for each appropriation as follows:

Program Element: ___________________________ Project/Task No.: _______________

Budget Represented: ________________________________________________________

                         FUNDING ($M) IN THEN YEAR DOLLARS


TYPE FUNDS: SCN,              BY       BY+1      BY+2       BY+3    BY+4      BY+5     TOTAL
RDT&E, O&MN, FMS

Quantities/Man-Hours

Competitive Contracts

Competitive Options

Sole Source Contracts

Sole Source Options
Other Government
Activities (OGA)
Other APs (by AP
number)

Total Cost
Pricing Methodology Used:


NOTE:          1. Base Year (BY) is the current execution year.
               2. Competitive Contracts are those planned for full and open competition.
               3. Competitive Options are those which are offered in conjunction with a
                  competitive contract and are exercised in a subsequent fiscal year.
               4. Other Government Activities (OGA) includes all dollars provided to
                  other organizations within the government where obligations or expenditures
                  are not directly under the control of the Acquisition Program Manager.
               5. Other APs includes the total dollars for each AP, if the program utilizes
                  multiple APs.
                                                          B-1
                                                                                      APPENDIX B
                                                              Sample Milestone Chart                                                                                                APPENDIX C


           EVENTS VS. TIME

                                               CONCEPT                    DEMONSTRATION                               ENGINEERIN G                                                 PRODUCTION
               PHASE
                                              EXPLORATION                        &                                          &                                                           &
                                              & DEFINIT ION               VALIDATION (D&V)                  MANUFACTURING DEVELOPMENT (E&MD)                                       DEPLOYMENT

MILESTONES                               0                      I                                      II                                                           III


                                                                    D&V                                 E&MD                          LRIP                                FRP
CONTRACT AWARDS


PROTOTYPE DEVELOPMENT


ENGINEERIN G DEVELOPMENT
MODEL (EDM)

                                                                SDR       PDR     CDR                  PDR       CDR      FCA1     PCA1        FCA
                                                                                                                                                     2      PCA 2                       FQR
DESIGN REVIEWS AND AUDIITS

                                                          FBL                                ABL                                    1
                                                                                                                                  PBL                    PBL2
CONFIGURATION MGMT BASELINE
                                                                                                                                               PRR

PRODUCTION READINESS REVIEW (PRR)
                                                                                    DT-I                       DT-IIA            DT-IIB              DT-IIC               DT-III

TEST & EVALUATION                                                                             OT-I                      OT-IIA            OT-IIB         OT-IIC                               OT-III


LOW RATE INITIAL PRODUCTION (LRIP)


FULL RATE PRODUCTION (FRP)
                                                                                  PROTOTYPE                                EDM                       LRIP                                              FRP
DELIVERY


MATERIAL SUPPORT DATE (MSD)                                                                                                                                                                            MSD

                                     ABL       ALLOCATED BASELINE                          OT       OPERATIONAL TESTING
                                     CDR       CRITICAL DESIGN REVIEW                      OT-IIC  OPEVAL
                                     DT       DEVELOPMENTAL TESTING                        PBL     PRODUCT BASELINE
                                     DT-IIC   TECHEVAL                                     PCA      PHYSICAL CONFIGURATION AUDIT
                                     FBL      FUNCTIONAL BASELINE                          PDR      PRELIMIN ARY DESIGN REVIEW
                                     FCA      FUNCTIONAL CONFIGURATION AUDIT               SDR      SYSTEM DESIGN REVIEW                                                              Optional for programs
                                     FQR      FORMAL QUALIFICATION REVIEW                  TECHEVAL TECHNICAL EVALUATION
                             SAMPLE
                      ESTIMATED COST CHART

                          ESTIMATED COST ($M)

TYPE FUNDS:              OPTION/PH
                 BASE YEAR        OPTION/PHOPTION/PHOPTION/PH
SCN, RDT&E,              ASE      ASE      ASE      ASE           TOTAL
O&MN, FMS                                                       CONTRACT

                   FY-1       FY-2         FY-3   FY-4   FY-5


Quantities/
Man-Hours


Estimated Cost




                                     D-1

                                                          APPENDIX D

								
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